Canadian growth stocks have the potential to grow their financials at a faster pace than the broader stock market can offer, offering a greater potential for returns compared to the rest. That said, the higher growth potential comes with a greater degree of capital risk.
To deliver growth faster than others, these companies also require more capital to fund their initiatives to achieve those goals. Thus, they also trade at higher-than-normal valuations.
If you are an investor with a higher risk tolerance, you might be better suited to investing in these companies. For conservative investors, the risk of losing a lot of the money invested in the stock market is not a promising picture.
Suppose you have a well-balanced portfolio and are willing to take a few risks in the stock market to capture the potential for significant wealth growth. In that case, I will discuss two TSX growth stocks you should keep on your radar.
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